Charitable Gift Annuity
A charitable gift annuity can provide income for life and then support your favorite ministry.
Charitable gift annuities are simple in design, easy to establish, and may be just the right way for you to lock in a future gift for your congregation, your favorite ELCA ministry or institution, or for the work of this church where the need is greatest.
You gain freedom from investment responsibility. Once you have made your gift, the Foundation does the rest. You simply receive a check in the mail, or a deposit in your checking account, at a fixed rate for the rest of your life. (Payments can be made semi-annually, quarterly, or monthly, assuming each payment is at least $100, or else annually.)
You get an immediate tax deduction. Part of your annuity is designated by the IRS as a charitable gift. Therefore, if you itemize, you receive a charitable income tax deduction. If the full deduction cannot be used in the year you make your gift, the unused portion can be carried forward for up to five years.
You save on taxes.
Usually some portion of your annuity payment is a return of principal throughout the years of your life expectancy. This portion is tax-free to you. You can avoid some capital gain taxes. If you fund your annuity with an appreciated security owned more than 12 months (valued more now than when purchased), you can bypass a portion of the applicable capital gain tax.
You decide the ELCA ministry that will ultimately benefit from your gift annuity. Designate any ministry of the ELCA you choose
—your congregation, synod, social ministry organization, colleges and seminaries, churchwide ministries, or other ministries special to you.
You may avoid estate taxes and probate costs.
A charitable gift made now will remove assets from your estate and possibly reduce estate tax and probate costs.
How does a charitable gift annuity work?
This is how a charitable gift annuity worked for Arthur. As the son of a missionary, Arthur knows first-hand the sacrificial commitment of those who serve throughout the world on behalf of the church. He wanted to provide support for this important ministry and at the same time increase his income. Arthur, 75 years old, gave $10,000 to the ELCA in exchange for a charitable gift annuity. The ELCA agreed to pay Arthur $710 for life (an annuity rate of 7.10%). Of that, $423 is tax-free for several years and Arthur received a significant charitable tax deduction as well. Most importantly, Arthur experienced the joy of knowing that his gift will make it possible for a missionary to serve—just as his dad had done several decades before.
Disclosure Statement
Here to help
Our nationwide network of professional gift planning staff can help you explore a variety of possibilities for making a significant gift to ministry and fulfilling your legacy goals at the same time.
The examples and information on this page are for illustrative and educational purposes only and should not be considered tax or legal advice. Please consult with your tax or legal advisor before proceeding with your estate plan. The Evangelical Lutheran Church in America, via the ELCA Foundation, currently does not offer charitable gift annuities to any persons in the states of Alabama, Alaska, Arkansas, Connecticut, Georgia, Hawaii, Iowa, Mississippi, Missouri, Nevada, New Mexico, Oklahoma, Oregon, Tennessee, and Washington.